Two Credit Rating Corporations, Moody's Investors Service (a subsidiary of Berkshire Hathaway) and Fitch Ratings, allegedly "enriched themselves by assigning high ratings to bonds backed by mortgages," according to a recently filed complaint. The junk mortgages allegedly imposed unfair payment terms and were disproportionately sold to African Americans and Latinos who purchased homes across the nation.
The administrative complaint is a precondition or first step to the filing of a Federal Civil Rights lawsuit. It is a first-of-its-kind complaint filed by the National Community Reinvestment Coalition with the Federal Department of Housing and Urban Development, it is reported by Kenneth R. Harney, "Civil Rights Complaint Targets Wall Street Rating Firms" (Los Angeles Times Online, Sunday, November 30, 2008).
There is a related post on www.insuranceclaimsissues.typepad.com.
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